Please type your values in the Effective Annual Rate (EAR) Calculator:
Annual Interest Rate (%):
Number of Compounding Periods (m):
Using the Effective Annual Rate (EAR) Calculator – Example
Let’s say that you want to calculate the Effective Annual Rate given the following information:
- Annual interest rate = 5%
- Number of compounding periods (monthly compounding) = 12
What will be the EAR?
To get the EAR, type the following values in the Effective Annual Rate calculator:
Then, press on the ‘Calculate EAR’ button, and you’ll get the result of 5.116%:
